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Is SPCX Worth Buying as Growth Surges but Valuation Stays Stretched?
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Key Takeaways
SPCX's third-quarter revenues surged 161.4% to $14.58 billion, while operating income reached $2.79 billion.
SpaceX trades at 59.9X sales versus the industry's 1.1X, raising concerns over valuation.
SPCX's 2027 earnings estimates surged 106.2% in four weeks, but heavy capital spending clouds upside.
Space Exploration Technologies Corp. (SPCX - Free Report) is growing at a pace that few large companies match, but its valuation leaves little room for disappointment. Third-quarter revenue accelerated sharply, profitability improved and earnings estimates moved higher.
The trade-off is equally clear. SpaceX is funding a large expansion across compute infrastructure, Starship and satellite networks, while the stock trades at substantial premiums to its industry.
SPCX Growth Is Accelerating Across Key Businesses
All three operating segments posted year-over-year revenue growth in the third quarter. Consolidated revenues surged 161.4% to $14.58 billion, while operating income improved to $2.79 billion from a $273 million loss a year earlier.
Connectivity revenues rose 69.5% to $5.25 billion and generated $2.37 billion of operating income. Super Intelligence, or SI, became the largest quarterly revenue contributor at $7.56 billion, up 829.9% year over year, while Space revenues increased 6.1% to $1.77 billion.
SpaceX Valuation Leaves Little Room for Missteps
SPCX trades at 59.9X price/sales, compared with 1.1X for the Wireless National industry. Its 412.7X enterprise value to EBITDA multiple is also far above the industry’s 6.8X. Those gaps raise the return hurdle and increase the cost of execution misses.
Rocket Lab Corporation (RKLB - Free Report) offers useful launch-sector context as an end-to-end space company that operates Electron and is developing the reusable Neutron rocket. AST SpaceMobile, Inc. (ASTS - Free Report) provides a connectivity comparison because it is building space-based cellular broadband designed to reach everyday smartphones.
SPCX Earnings Estimates Are Moving Sharply Higher
Estimate revisions have moved sharply in SPCX’s favor. The earnings estimate for fiscal 2027 has risen 106.2% over the past four weeks and 178.8% over the past 12 weeks, reflecting a much stronger expected earnings profile.
The Zacks Consensus Estimate calls for 2027 revenues of $160.26 billion and earnings of $4.10 per share. Management also expects first-quarter 2027 revenues of $33 billion to $37 billion, compared with the consensus estimate of $34.67 billion.
SpaceX Capital Intensity Tempers the Upside
Rapid growth requires unusually heavy investment. Capital expenditures reached $19.59 billion in the third quarter and $48.07 billion for the first nine months of 2026, compared with nine-month operating cash flow of $13.10 billion.
SpaceX held about $89.86 billion in cash and marketable securities at Sept. 30, 2026. Even so, management expects fourth-quarter capital expenditures of $35 billion to $40 billion as it expands SI compute capacity while continuing to fund Starship and next-generation satellite programs.
SPCX Signals a Hold Despite Strong Momentum
The stock offers substantial growth exposure, but the valuation and spending profile make the risk-reward balance less straightforward. Revenue growth, improving profitability and higher earnings estimates support the case, while capital intensity and execution requirements argue for discipline.
SPCX currently carries a Zacks Rank #3 (Hold). Its Momentum Score of A points to favorable momentum characteristics, but the Value Score of F, Growth Score of C and VGM Score of D show a less supportive broader Style Score mix. That combination favors a measured stance rather than treating operating acceleration alone as enough to justify buying the stock.
View the Zacks #1 Rank List
Image: Bigstock
Is SPCX Worth Buying as Growth Surges but Valuation Stays Stretched?
Key Takeaways
Space Exploration Technologies Corp. (SPCX - Free Report) is growing at a pace that few large companies match, but its valuation leaves little room for disappointment. Third-quarter revenue accelerated sharply, profitability improved and earnings estimates moved higher.
The trade-off is equally clear. SpaceX is funding a large expansion across compute infrastructure, Starship and satellite networks, while the stock trades at substantial premiums to its industry.
SPCX Growth Is Accelerating Across Key Businesses
All three operating segments posted year-over-year revenue growth in the third quarter. Consolidated revenues surged 161.4% to $14.58 billion, while operating income improved to $2.79 billion from a $273 million loss a year earlier.
Connectivity revenues rose 69.5% to $5.25 billion and generated $2.37 billion of operating income. Super Intelligence, or SI, became the largest quarterly revenue contributor at $7.56 billion, up 829.9% year over year, while Space revenues increased 6.1% to $1.77 billion.
SpaceX Valuation Leaves Little Room for Missteps
SPCX trades at 59.9X price/sales, compared with 1.1X for the Wireless National industry. Its 412.7X enterprise value to EBITDA multiple is also far above the industry’s 6.8X. Those gaps raise the return hurdle and increase the cost of execution misses.
Rocket Lab Corporation (RKLB - Free Report) offers useful launch-sector context as an end-to-end space company that operates Electron and is developing the reusable Neutron rocket. AST SpaceMobile, Inc. (ASTS - Free Report) provides a connectivity comparison because it is building space-based cellular broadband designed to reach everyday smartphones.
SPCX Earnings Estimates Are Moving Sharply Higher
Estimate revisions have moved sharply in SPCX’s favor. The earnings estimate for fiscal 2027 has risen 106.2% over the past four weeks and 178.8% over the past 12 weeks, reflecting a much stronger expected earnings profile.
The Zacks Consensus Estimate calls for 2027 revenues of $160.26 billion and earnings of $4.10 per share. Management also expects first-quarter 2027 revenues of $33 billion to $37 billion, compared with the consensus estimate of $34.67 billion.
SpaceX Capital Intensity Tempers the Upside
Rapid growth requires unusually heavy investment. Capital expenditures reached $19.59 billion in the third quarter and $48.07 billion for the first nine months of 2026, compared with nine-month operating cash flow of $13.10 billion.
SpaceX held about $89.86 billion in cash and marketable securities at Sept. 30, 2026. Even so, management expects fourth-quarter capital expenditures of $35 billion to $40 billion as it expands SI compute capacity while continuing to fund Starship and next-generation satellite programs.
SPCX Signals a Hold Despite Strong Momentum
The stock offers substantial growth exposure, but the valuation and spending profile make the risk-reward balance less straightforward. Revenue growth, improving profitability and higher earnings estimates support the case, while capital intensity and execution requirements argue for discipline.
SPCX currently carries a Zacks Rank #3 (Hold). Its Momentum Score of A points to favorable momentum characteristics, but the Value Score of F, Growth Score of C and VGM Score of D show a less supportive broader Style Score mix. That combination favors a measured stance rather than treating operating acceleration alone as enough to justify buying the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.